Lenders support proposals to improve the valuations market
Published: 5 February 2014 | Author: Bernard Clarke
Lenders want to work with the surveying profession to help deliver improvements to the valuations market to help make it run more smoothly. We welcome the recent publication of the independent report by Dr Oonagh McDonald, commissioned by the Royal Institution of Chartered Surveyors, although we note that only two of 12 recommendations are directed specifically at lenders.
Lenders rely on the professional judgement of valuers, and it is important that there is both confidence in the market and an adequate supply of professionals providing valuation services. The market would also be reinforced by greater clarity among lenders, borrowers and valuers about the purpose and scope of valuation reports.
Some of the report’s recommendations broadly reflect points we made in our own response to the RICS as part of the inquiry that led to publication of the report. Others will need more detailed consideration, as part of a continuing dialogue between the lending industry and the surveying profession. In particular, we believe there is a need for caution before introducing the equivalent of the Scottish home report into England and Wales – as the newly published report acknowledges.
We believe that the report provides a useful checklist of improvements, and look forward to playing a constructive role in taking them forward. There is potential to help the market operate more smoothly, although, as the report makes clear, it is affected by an extensive range of influences.